ZeroFox Physical Security Intelligence Daily Brief - February 27, 2025

ZeroFox Physical Security Intelligence Daily Brief - February 27, 2025

ZeroFox physical security experts collect, curate, and analyze information derived from open and proprietary sources for comprehensive context of the circumstances surrounding global events. Here is today’s daily roundup of major developments.

Brief Highlights

• Treasury Targets Covert Iranian UAV Procurement Network
• UK Latest European Country to Up Defense Commitments
• Taiwan Detains China-Crewed Ship over Undersea Cable Cut

Treasury Targets Covert Iranian UAV Procurement Network

The United States has sanctioned six entities based in Hong Kong and the People’s Republic of China (PRC), engaged in the procurement of unmanned aerial vehicle (UAV) components for Iranian firm Pishtazan Kavosh Gostar Boshra (PKGB) and its subsidiary Narin Sepehr Mobin Isatis (NSMI). These entities operate as front companies and facilitate the purchase and shipment of key components for the benefit of PKGB and NSMI, which serve as key suppliers for Iran’s UAV and ballistic missile programs.

UK Latest European Country to Up Defense Commitments

Prime Minister Keir Starmer has announced the UK was upping its defense budget by 0.2 percent to 2.7 percent by 2027. The UK's development budget will be decreased to account for the increase in defense spending. This will amount to a GBP 13.5 billion (approx. USD 17 billion) increase in defense spending with further commitments by 2034. The UK announcement is just the latest from a European state looking to increase defense spending after the United States proposed decreasing its defense commitments in Ukraine and Europe in general. EU states are rapidly looking to beef up their defense industries to deter Russian military aggression.

Taiwan Detains China-Crewed Ship over Undersea Cable Cut

Taiwan’s coast guard has detained a cargo ship and its Chinese crew after an underwater telecommunications cable was found to have been cut, marking the fifth such incident this year alone. The detained cargo ship “Hong Tai,” registered in the West African nation of Togo with Chinese funding, had been lingering near the cable in waters off the southwestern coast of Taiwan since February 22, 2025. Taiwan’s telecom company Chunghwa detected the cable had been disconnected shortly after the ship dropped anchor earlier on the same day. Taiwanese authorities could not rule out the possibility of a Chinese deliberate cutting of the cable, or a gray zone operation, and thus detained the ship and escorted it to Taiwan, citing national security concerns. The grey zone operation refers to activities in which China exerts pressure without directly confronting Taiwan, such as sending weather balloons or sand dredging in its waters. The incident is still pending further investigation, but similar incidents involving underwater communications cables in the Baltic Sea have prompted diplomatic disputes between European countries and Russia in recent months.